Align Technology (ALGN) FY2022 results: revenue $3.7 billion, down 5.5% on the year

Align Technology Inc. (ALGN) reported revenue of $3.7 billion for fiscal 2022, the year ended 31 December 2022, down 5.5% on the year before. Net income was $362 million, down 53.2%, and diluted earnings per share $4.61. The figures are the company's own, from the 10-K it filed with the SEC on 27 February 2023.

Revenue

$3.7 billion

-5.5% on the year

FY2015FY2022

Operating margin

17.2%

24.7% a year earlier

FY2015FY2022

Net income

$362 million

-53.2% on the year

FY2015FY2022

Diluted EPS

$4.61

-52.4% on the year

FY2015FY2022

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2022 · Q2 FY2022 · Q3 FY2022 · Q4 FY2022

Income statement (profit and loss)

$ million	FY2022	FY2021	FY2020	On the year
Revenue	3,735	3,953	2,472	-5.5%
Cost of revenue	1,101	1,017	709	+8.2%
Gross profit	2,634	2,935	1,763	-10.3%
Gross margin	70.5%	74.3%	71.3%
Research and development	305	250	175	+21.9%
Selling, general and administrative	1,674	1,709	1,201	-2.0%
Operating income	643	976	387	-34.2%
Operating margin	17.2%	24.7%	15.7%
Pre-tax income	599	1,012	379	-40.8%
Income tax	237	240	-1,397	-1.2%
Effective tax rate	39.6%	23.7%	-368.6%
Net income	362	772	1,776	-53.2%
Net margin	9.7%	19.5%	71.8%
Diluted EPS	$4.61	$9.69	$22.41	-52.4%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2022	FY2021	FY2020	On the year
Operating cash flow	569	1,173	662	-51.5%
Capital expenditure	292	401	155	-27.2%
Free cash flow	277	771	507	-64.1%
Free cash flow margin	7.4%	19.5%	20.5%
Cash from investing	-213	-563	-232
Cash from financing	-502	-458	-30.8
Depreciation and amortisation	126	109	93.5	+15.7%
Share-based compensation	133	114	98.4	+16.6%
Buybacks	435	375	0.0	+16.0%
Diluted shares, weighted	78m	80m	79m	-1.6%
Shares outstanding at period end	77m	79m	79m	-1.8%

Balance sheet

$ million	FY2022	FY2021	FY2020	On the year
Shareholders' equity	3,601	3,623	3,234	-0.6%
Debt	0.0	0.0	0.0
Operating lease liabilities	100	103	64.4	-2.3%
Other liabilities	2,246	2,217	1,531	+1.3%
Total liabilities and equity	5,948	5,942	4,830	+0.1%
Fixed assets	1,232	1,082	735	+13.9%
Goodwill	408	419	445	-2.6%
Intangible assets	95.7	110	130	-12.8%
Investments	99.5	197	0.0	-49.6%
Cash and equivalents	942	1,099	961	-14.3%
Receivables	860	897	658	-4.2%
Inventory	339	230	139	+47.1%
Other assets	1,973	1,908	1,762	+3.4%
Total assets	5,948	5,942	4,830	+0.1%

10-K for the year ended 31 December 2022, filed 27 February 2023: the filing.